Agrivoltaics Market Trends

Growth Drivers

• Rising Demand for Power-Agri-solar power generation systems can combine multiple plants on one site and improve power generation efficiency and power generation capacity.

• According to the International Energy Agency, global electricity demand is expected to further accelerate over the next three years, growing at an average annual rate of around 3.4% until 2026.

• Growing Government Initiatives- Governments around the world are committed to helping farmers and landowners install Agrivoltaics systems, which may include the use of high-quality equipment to facilitate the introduction of agricultural solar power.

Challenges

• High initial cost - Agrivoltaics projects are significantly more expensive than ground-mounted solar systems as they are integrated with specialized components such as modules, mounting systems, and trackers, costs associated with the approval processes or design constraints as they must address subsoil conditions and are highly dependent on the type of agricultural application selected. Higher costs may also be incurred when approving agricultural solar power projects owing to the involvement of various types of legal costs, and the cost of land preparation. For Agrivoltaics installed far from the ground, the tracking system must be installed at a height of over 4 meters, making tracker-based agricultural photovoltaic mounting systems significantly more expensive.

• Lack of awareness among farmers about the benefits of Agrivoltaics systems may slow their adoption rate

• Stringent regulations associated with the usage of land may pose obstacles to agrivoltaics market growth